Directors’ report for the year-end April 2009 

The Directors are pleased to present their report and audited financial statements for the year ended 30^th April 2009, showing a remarkably strong overall position.

In the last six months the Group has secured ten-year facilities with its two long-term lenders of which 80% has been fixed for the full term of the facility. Having the confidence of leading bankers in a recession underlines the recognition of the strength of the Group and its ability to deal with difficult times.

The rental income side was predictably marginally lower but has not suffered from voids and the fixed income arrangements with Notting Hill Housing Association continue to secure income for that part of the portfolio. Indeed the reduced borrowing rates has more than compensated for the slight reduction in income.  Also earnings have been boosted with the acquisition in early 2009 of 25 units in Wimbledon from Barratts Homes, showing a gross return of 10%. We continue to look for such investments to make use of the Group’s cash war chest.

The new Portfolio Director is carrying on and developing further the good work of the retiring Director whose many years of loyalty and hard work is appreciated by the Board. The ongoing programme of improvements to the property portfolio will continue to form an important part of the new Director’s role. 

The Business Centres have been affected to a degree by the recession however the completion of the much larger redeveloped ‘state of the art’ Tonbridge Centre should prove successful in the coming year.

The Board of Directors carefully planned strategy is led energetically by the Chairman and Chief Executive with firm financial control, keeping cash reserves available, ensuring the Group’s strong present position is maintained. For the future, with the support of its excellent staff, bankers and professional advisors, the Board is very confident its prudent planning and speed of response will continue to place the Group in the strongest position to face the ever changing economic scene.